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Higher interest rates are not threatening stock markets just yet as central banks around the world are still running the printing presses, supporting asset prices.

Quantitative easing (QE) will pump almost $3 trillion extra into markets this year, analysts at State Street believe, before more central banks follow the US Federal Reserve’s example and start withdrawing the stimulus.

“It is too early to call time on the market, because central banks are there,” said Antoine Lesné, top strategist and researcher in the finance group’s ETF arm.

The US Fed under Janet Yellen started cutting down its stock of assets purchased, but other central banks including the ECB are still buying more bondsCredit:
Yin Bogu/Xinhua / Barcroft Images

“They are continuing to push the expansion of balance sheets - we are at $21.3 trillion of assets purchased by the largest central banks, including China. We...